Unstable Cash GenerationRecent reversion to negative operating and free cash flow shows cash-generation is inconsistent. Persistent cash deficits constrain capex, working-capital cushions, and debt servicing, elevating refinancing and liquidity risk if profitability slips or growth requires more funding.
Rising Leverage And Stretched Balance SheetA marked increase in debt has reduced financial flexibility; higher leverage limits the firm's ability to absorb margin swings and raises interest and covenant risk. With low returns on equity so far, incremental leverage has not clearly translated into durable shareholder value.
Very Thin Net Margins And Earnings VolatilityDespite a return to profitability, net margins remain negligible and historical earnings variability is high. Weak structural margins reduce buffer against cost shocks and make long-term cash-flow predictability poor, complicating planning and faith in sustained profit growth.